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TXCD BERHAD’s Q3 FY2025 Report: A Glimmer of Profit Amidst Significant Challenges
TXCD BERHAD (formerly AGESON BERHAD) has released its unaudited consolidated results for the third financial quarter ended 31 March 2025. This report offers a snapshot of the company’s performance, revealing a surprising quarterly profit despite a challenging year-to-date landscape and the absence of prior-year comparative figures due to a change in financial year-end.
While the Group recorded a profit after taxation of RM1.07 million for the current quarter, it’s crucial for Malaysian retail investors to understand the broader context, including a substantial year-to-date loss and significant financial hurdles the company is addressing.
Unpacking the Latest Financials: Q3 FY2025 Performance
Given the change in the Group’s financial year-end from 31 December 2023 to 30 June 2024, direct year-on-year comparisons for the current quarter and cumulative period are not available in this report. Therefore, our analysis will focus on the performance of the current quarter (Q3 FY2025) against the immediate preceding quarter (Q2 FY2025) to provide some context.
Quarterly Performance (Q3 FY2025 vs. Immediate Preceding Quarter Q2 FY2025)
Current Quarter (Q3 FY2025)
Revenue: RM6,152,000
Gross Profit: RM2,547,000
Profit Before Taxation: RM2,237,000
Net Profit: RM1,068,000
Basic EPS: 0.03 sen
Immediate Preceding Quarter (Q2 FY2025)
Revenue: RM10,605,000
Gross Profit: RM679,000
Profit Before Taxation: RM92,000
Net Profit: RM92,000
Basic EPS: Not explicitly stated, but implied to be lower.
For the current quarter ended 31 March 2025, TXCD BERHAD reported a revenue of RM6.15 million, primarily driven by its construction segments. This represents a decrease of approximately 42% compared to the RM10.61 million revenue in the immediate preceding quarter. Despite the lower revenue, the Group managed to significantly improve its profitability.
The gross profit surged from RM679,000 in the previous quarter to RM2.55 million in Q3 FY2025. This, coupled with a notable reduction in operating expenses from RM587,000 to RM174,000, led to a substantial increase in profit before taxation from RM92,000 to RM2.24 million. Consequently, the Group recorded a net profit of RM1.07 million for the quarter, a significant improvement from the RM92,000 net profit in the preceding quarter.
Year-to-Date Performance (Current Period To Date 31.03.2025)
While the quarterly performance shows positive momentum, the cumulative year-to-date figures paint a different picture. For the period ended 31 March 2025, the Group’s revenue stood at RM30.57 million. However, it recorded a substantial loss before taxation of RM95.23 million, resulting in a net loss of RM96.40 million for the financial period to date. This translates to a basic loss per share of 30.93 sen.
Financial Health: Balance Sheet Overview
The balance sheet as of 31 March 2025 shows a significant contraction compared to 30 June 2024. Total assets decreased from RM111.09 million to RM14.04 million, and total equity saw a drastic reduction from RM99.94 million to RM3.54 million. This sharp decline is primarily due to a substantial increase in accumulated losses, which grew from RM181.94 million to RM278.34 million. This has led to a significant drop in Net Assets Per Share from RM0.41 to just RM0.01.
On a positive note, the Group reported a net cash generated from operating activities of RM107,000 for the year-to-date, with cash and cash equivalents standing at RM119,000 at the end of the period. The report also highlights that the Group has no borrowings.
| Financial Metric | As at 31.03.2025 (RM’000) | As at 30.06.2024 (RM’000) | Change (RM’000) |
|---|---|---|---|
| Total Assets | 14,035 | 111,086 | (97,051) |
| Total Equity | 3,543 | 99,938 | (96,395) |
| Accumulated Losses | (278,337) | (181,942) | (96,395) |
| Net Assets Per Share (RM) | 0.01 | 0.41 | (0.40) |
Navigating Risks and Future Prospects
TXCD BERHAD acknowledges the challenging economic environment but remains focused on expanding its business growth. The Group is cautiously optimistic about its prospects in the construction industry, expecting it to be the main revenue driver moving forward. The Malaysian economy’s growth in 2025, driven by resilient domestic expenditure and improving external demand, is seen as a supportive factor.
However, it is crucial to address the significant challenges highlighted in the report:
- Auditor’s Disclaimer Opinion: The auditors’ report on the financial statements for the period ended 30 June 2024 was issued with a disclaimer opinion. This is a serious red flag, indicating that the auditors could not obtain sufficient appropriate audit evidence to form an opinion on the financial statements, raising significant concerns about the reliability of the financial reporting.
- Regularisation Plan: The company has received a second extension of time (EOT) until 29 October 2025 to submit its regularisation plan to regulatory authorities. This implies that TXCD BERHAD is currently classified as a financially distressed company (often referred to as a PN17 or GN3 company in Malaysia), requiring it to formulate and implement a plan to regularise its financial condition and operations. The successful execution of this plan is paramount for the company’s continued listing and long-term viability.
- Significant Accumulated Losses: The substantial accumulated losses continue to weigh heavily on the company’s equity position, leading to a very low Net Assets Per Share.
Despite these challenges, the Board is cautiously optimistic about the Group’s satisfactory performance in the financial year ending 2025, contingent on unforeseen circumstances.
Summary and
TXCD BERHAD’s Q3 FY2025 report presents a mixed bag for observers. The quarterly profit of RM1.07 million is a positive development, primarily driven by a significant reduction in operating expenses, even as revenue from construction segments saw a quarterly decline. This suggests some internal cost management efforts are yielding results.
However, the larger picture remains challenging. The substantial year-to-date loss of RM96.40 million, coupled with the drastic decline in total assets and equity, points to deep-seated financial issues. The auditor’s disclaimer opinion on the previous financial year’s statements and the ongoing need for a regularisation plan are critical factors that highlight the company’s precarious financial health.
While the Group aims to leverage the construction sector as its main revenue driver and expresses cautious optimism for FY2025, the successful implementation of its regularisation plan will be the ultimate determinant of its future trajectory.
Key points for consideration include:
- The significance of the auditor’s disclaimer opinion, which casts doubt on the accuracy and completeness of prior financial statements.
- The critical importance of the regularisation plan and the company’s ability to submit and successfully execute it by the extended deadline of 29 October 2025.
- The persistent challenge of substantial accumulated losses impacting the company’s overall financial stability and net asset value.
- The Group’s reliance on the construction segment for future revenue, and its ability to secure and execute profitable projects amidst the current economic climate.
